Noida Toll Bridge Company Ltd (NBTL) is all set to come out with a capital market offering in November 1998 to raise Rs 100 crore for part-financing the construction of a toll bridge across the Yamuna connecting Noida to South Delhi.
SBI Capital Markets has been appointed as the lead manager of the issue. The exercise, the first one of its kind, involves a simultaneous but unlinked issue of deep discount bonds(DDBs) and fully convertible debentures(FCDs) for an amount of Rs 500 million each.
The issue, which provides tax benefits to investors under section 88, section 54EA, section 54EB and Section 10(23) G of the Income Tax, is primarily targeted at retail investors. The DDBs would have a tenure of 16 years, and to provide exit and liquidity to investors, the company has finalised arrangements lead-managed by Infrastructure Development Finance Company(IDFC) to provide for a take-out to investors at the end of the fifth and ninth year from the date of allotment. The DDBs have received a rating of "AAA"(SO) from CARE, given the take-out provided by IDFC.
The company has structured the FCDs in order that the investors get an assured return during the construction period of the first three years, after which they would get converted into equity capital at par.